Tekelec reported Q2 revenue of $133.0 million, compared to $95.6 million in the second quarter of 2004. Net income (GAAP) was $5.6 million, or $0.08 per diluted share, for the second quarter of 2005, compared to a net loss of $304,000, or $0.00 per diluted share, in the second quarter of 2004.
Tekelec also announced plans to purchase the minority interest in Santera for cash in the amount of $75.6 million. The transaction is expected to close in early October 2005.
- Network Signaling Group revenue increased to $81.5 million, up 20%, compared to $68.0 million in Q2 '04, and increased 10% sequentially, marking the highest quarterly signaling revenue in the history of the company. Bell Canada has selected Tekelec's Eagle 5 Signaling Application System and integrated network monitoring platform to address its evolving signaling requirements as it enhances its core infrastructure. Bell Canada is replacing legacy signaling and monitoring equipment with Tekelec solutions.
- Switching Solutions Group revenue increased to $33.3 million, up 158%, compared to $12.9 million in Q2 '04, and increased 34% sequentially, as we added 19 new switching customers during the quarter. Celcom, Malaysia's largest mobile operator, will be deploying the T8000 wireless media gateway as part of an IP-based next-gen switching solution.
- Communications Software Solutions Group revenue increased to $7.1 million, up 65%, compared to $4.3 million in Q2 ‘04, but declined 26% sequentially, or $2.4 million. As part of a bundled Tekelec solution, Bell Canada is also deploying Tekelec's network-wide monitoring solution. This implementation will feed the critical business intelligence data required for the applications that run the carrier's customer care, call center operations and customer settlements processes. Also, DTAC Thailand, a leading Thai mobile operator, has selected Tekelec's Integrated Application Solution for roaming management.
Tekelec President and CEO Fred Lax commented, "Tekelec's results were strong in the second quarter, with orders up 27% year-over-year and up 29% sequentially, and revenue increasing 39% year-over-year and up 11% sequentially. For the eleventh consecutive quarter, strong order volumes provided us with a book-to-bill ratio greater than one."http://www.tekelec.com
- In June 2003, Tekelec acquired the majority interest in Santera Systems, a start-up that developed an integrated voice and data switching platform for delivering Class 4/5 services, PRI offload, packet/cell switching and voice over broadband services.
